Traditionally, leveraged buyouts were used as a restructuring strategy to correct for managerial mistakes or because the firm's managers were making decisions that primarily served their own interests rather than those of shareholders.

Question

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Leveraged buyouts (LBOs) were often employed to address agency problems where managers were not acting in the best interests of shareholders, by replacing management or altering the firm's capital structure to improve efficiency and accountability.

Traditionally, Leveraged Buyouts Were Used as a Restructuring Strategy to Correct